Edible Oil Imports Surge Amid Duty Evasion Concerns

India's import of crude soybean oil has more than doubled, reaching 19.11 lakh tonnes in the first five months of the current oil marketing year, with significant increases in imports from Argentina and Russia. The rise in soybean oil imports comes despite an overall marginal decrease in total edible oil imports, attributed to a decline in palm oil and sunflower oil shipments. Concerns have been raised by the Indian Vegetable Products Association regarding potential duty evasion through re-routed imports from Nepal, which they argue undermines local farmers' earnings due to weakened market sentiment. They have urged the government to enhance border checks and enforce stricter compliance with Rules of Origin to mitigate these issues. This situation has also led to discussions about adjusting import regulations, including potential quotas to regulate refined oil imports from Nepal. The changes reflect ongoing challenges in balancing import duties, local production, and market stability in the edible oil sector.